Fed. stimulus money means savings for comm'l. R.E. clients

The American Recovery & Reinvestment Act of 2009 (ARRA) provides federal stimulus money to reduce fees on SBA loans for commercial real estate. Businesses using SBA 504 to buy their own facilities or using their facilities to collateralize SBA 7A working capital loans will realize savings until the funds are used up. The SBA 504 loan program provides a 40% (of total project cost including renovations and soft costs) second mortgage loan to help businesses acquire or construct commercial buildings, condos or coops. The SBA 7A loan can be used for any business purpose. Under ARRA, the buyer saves 2% upfront on loan fees when using SBA 504. Similar savings exist on the 7A loan (2-3.5% upfront savings). Such savings combined with today's low interest rates and historically low real estate prices make it very affordable for businesses to purchase their own facilities and enjoy stability, desirable location and build up of equity for their businesses and families. Roslyn Goldmacher is the president and CEO of the Long Island Development Corp. (LIDC) and the Greater New York Development Co. (GNYDC), Bethpage, N.Y.